HCI Group Q1 Earnings Show Mixed Performance with Higher EPS

HCI Group Inc. reports Q1 earnings of $74.23M, or $5.35 per share, up from $3.81 last year, yet total earnings fell compared to last year's $96.96M. Revenue increased by 4.8%, reaching $216.43M. Investors should weigh these mixed signals carefully.

Date: 09-05-2025

AI Rating: 6

Earnings Per Share (EPS): HCI Group reported an EPS of $5.35, which exceeded last year’s EPS of $3.81. This represents a strong performance on a per-share basis, suggesting improved profitability relative to the number of shares outstanding.

Revenue Growth: Revenue rose by 4.8% to $216.43 million from $206.61 million in the previous year. This growth indicates a positive trend in sales, reflecting the company's ability to attract and retain customers.

Net Income: Despite the rise in the EPS from a year ago, the overall net income of $74.23 million represents a decline from $96.96 million last year. This sharp drop in total earnings may concern investors regarding potential long-term sustainability.

Profit Margins: While the report does not specifically provide details about profit margins, the growth in EPS alongside declining total earnings could imply that margins may have been squeezed despite revenue growth.

Free Cash Flow and Return on Equity: The report does not provide information regarding free cash flow or return on equity metrics, which are critical for assessing operational efficiency and shareholder value generation. Investors may want further insights into these areas.

In summary, while the increase in EPS and revenue growth is encouraging, the decline in net income raises concerns. Professional investors may perceive the situation as a mixed bag, prompting close monitoring of HCI Group’s operational strategies and market adjustments in the upcoming quarters. A thorough evaluation of future financial disclosures will be essential to gauge whether the company can sustain its growth trajectory.

Stocks: HCI